Algeria and Gas Natural SDG SA (GAS.MC) have reached a preliminary deal on the price of gas supplied to the Spanish company, Algeria's Oil Minister Chakib Khelil said Tuesday.
But Khelil couldn't give details of price agreed because the accord isn't final yet.
But as no agreement has been reached yet over a demand by Gas Natural to make contracts more flexible on volumes, arbitration s continuing, he said.
Khelil said he expects a verdict by an international court in Geneva on a dispute between Algerian state-energy company Sonatrach and Gas Natural, as well as on a separate dispute with Spanish oil company Repsol SA (REP) by the summer, - unless an agreement is reached before that.
Independently from the legal proceedings, Algeria and Gas Natural are negotiating about Gas Natural joining the Medgaz gas pipeline consortium. Medgaz will transport natural gas from Algeria to Spain.
Gas Natural needs to agree to pay market prices for natural gas flowing through Medgaz, if it wants to take part in the consortium, Khelil said.
The company and Algerian officials are scheduled to meet at the end of this month in London, he added.